The text discusses private solutions for resolving externalities using the honey market. Among the reasons why the market solution works well in the honey market is the fact that:
A) bees don't fly far, and thus it is easy to identify which farmers are getting the benefits of their pollination activities.
B) the owners of the beehives can clearly be identified.
C) the market limits the beneficial activities of the bees to those farmers who have very small farms.
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

Bees have limited flying range, which makes it easier to identify which farmers are benefiting from their activities. This allows for a more targeted solution to externalities in the honey market.

The Text Discusses Private Solutions for Resolving Externalities Using the Honey